The report: Understanding AI: Your real-world CX playbook
Source: Qualtrics
Why we picked it: The report’s findings on consumer trust in AI and preference for human interaction are particularly relevant in an industry where trust is paramount. Its framework for categorizing AI capabilities provides a roadmap for identifying specific use cases in banking, from fraud detection to personalized financial advice. Moreover, the emphasis on partnering AI with human expertise rather than replacing staff aligns perfectly with the need for knowledgeable, empathetic banking professionals. It’s not just about implementing AI; it’s about doing so in a way that enhances customer relationships and builds trust — a critical consideration for any bank looking to thrive in the digital age.
Executive Summary
Artificial intelligence is dominating the headlines, and businesses are scrambling to harness — and inherit — its power. But amid the AI frenzy, a crucial question emerges: How can companies implement AI to truly transform customer experiences without losing the human element?
A recent report from Qualtrics, a leader in experience management, offers a refreshing perspective. It presents a four-step playbook for businesses looking to integrate AI into their customer experience strategies effectively. The report emphasizes that while AI can scale efforts infinitely, the key to success lies in partnering it with human expertise.
This approach not only addresses consumer concerns about AI replacing human interactions but also positions AI as a tool to enhance, rather than replace, the human touch in customer service.
Key Takeaways
- Only 48% of consumers are comfortable with AI use in general, highlighting the critical need for thoughtful implementation.
- 71% of consumers prefer human interaction for technical support, which means financial institutions need to preserve that human presence in customer service.
- Qualtrics recommends categorizing AI capabilities into five “superpowers”: classification, interpretation, prediction, generation and optimization.
- The report suggests positioning AI initiatives under four bold goals: make money, save money, reduce risk and manage change.
Understanding AI: Cutting Through the Jargon
In the rapidly evolving world of AI, understanding the terminology is crucial. The Qualtrics report begins by demystifying key AI concepts:
Artificial intelligence (AI): This broad term encompasses computerized systems that can perform seemingly human functions, often based on pattern recognition.
Generative AI: A cutting-edge subset of AI focused on creating human-like content or data.
Machine learning (ML): Systems that learn from previously captured data to make new decisions or predictions.
Natural language processing (NLP): Technology that can understand, interpret, and generate human language.
Large language models (LLM): AI models specifically designed for natural language tasks.
By clarifying these terms, the report lays a foundation for businesses to better understand and communicate about AI technologies within their organizations.
The Five Superpowers of AI in Customer Experience
Qualtrics identifies five core capabilities of AI that can significantly impact customer experience:
- Classification: Sorting data into different categories
- Interpretation: Extracting meaning, insights, and patterns from data
- Prediction: Forecasting future outcomes based on data analysis and modeling
- Generation: Producing new content, including text, images, data, code, or audio
- Optimization: Finding the best solution in complex situations with many variables
Each of these capabilities has specific use cases across various industries. For example, in the financial sector, AI’s classification and interpretation abilities can be used for anti-money laundering (AML) and fraud detection. In manufacturing, predictive capabilities can be applied to assembly line maintenance, forecasting potential equipment failures and scheduling preemptive maintenance.
The Human Factor: Partnering AI with People
Despite AI’s potential, the report highlights a significant concern: consumer hesitance about AI replacing human employees. The data is telling:
- 27% of consumers don’t trust the information AI provides
- 45% have concerns about poor quality interactions with AI
- 48% worry about a lack of real humans to connect with
These statistics underscore the importance of partnering AI with human employees rather than using it as a replacement. Qualtrics suggests using AI to augment human capabilities:
For frontline staff: AI tools can provide real-time prompts, context, and insights, enabling employees to deliver better service.
For CX teams: AI-enabled journey monitoring can proactively identify pain points in consumer behavior patterns and suggest fixes.
This approach addresses consumer concerns while maximizing the benefits of AI technology.
Positioning AI for Success: Four Bold Goals
To gain stakeholder buy-in and effectively implement AI in CX strategies, Qualtrics recommends aligning AI initiatives with four streamlined goals:
Make money: Position AI as a tool for finding new markets and delivering game-changing insights. This can be achieved through auto-segmentation and NLP analytics.
Save money: Use AI to automate time-consuming tasks and capture trends, cutting costs in the process. Interaction summaries and response generation are key applications here.
Reduce risk: Leverage AI to turn diverse signals into a coherent view, highlighting issues before they arise. Quality and compliance scoring are valuable in this context.
Manage change: Enable new CX capabilities while helping staff adapt to new demands. Action recommendations and interactive dashboards can facilitate this goal.
By framing AI initiatives under these bold objectives, businesses can more easily demonstrate the value of AI adoption in CX strategies.
The Human-Centric Approach to AI Implementation
Throughout the report, Qualtrics emphasizes the importance of maintaining a human-centric approach to AI implementation. This involves recognizing that customers still seek human connection in service experiences, equipping frontline agents with smart tools to help them deliver that connection and aligning AI adoption with real, human needs to increase the likelihood of success
By focusing on empowering employees and enhancing, rather than replacing, human interactions, businesses can navigate the AI landscape more effectively.
As financial institutions navigate the complex world of AI implementation in customer experience, the Qualtrics report offers a clear roadmap. The key lies in seeing through the hype, identifying what’s truly relevant for business challenges and objectives, and tying it all together with a people-first approach. As AI continues to evolve, those who can strike this balance will be best positioned to deliver exceptional customer experiences in the AI-driven future.
Editor’s note: This article was prepared with AI language software and edited for clarity and accuracy by The Financial Brand editorial team.